January consumer spending misses forecasts

Washington, D.C. -- A report released Monday by the Commerce Department showed that consumer spending in the United States in January edged up 0.2%, curbed by increased food and gas prices.

The results missed Bloomberg News forecasts and represented the smallest gain since June.

Incomes beat projections by climbing 1%, according to the report, reflecting the tax-cut compromise reached by President Obama and Congressional Republicans in December, and inflation remained below the Federal Reserve’s long-term forecast.

A median estimate of 71 economists surveyed by Bloomberg News called for a 0.4% advance in spending. Projections ranged from increases of 0.2% to 0.5%.